ch 9 Flashcards
what are the marketing objectives
1-increase market share:gain a competitive edge can benefit from economies of scale(lower average cost) this can be done by increasing advertising
2-increase revenue
3-bulid a brand :brand name get recognised usp
SMART what does it stand for
Specific
Measurable
Agreed
Realistic
Time specific
methods of portfolio analysis
1-product life cycle
2-boston matrix
what is the product life cycle
describes the stages a product goes through from when it was first thought of till its is finally removed from the market and the sales expected to be made over this time the stages are introduction growth maturity and decline
is a method of portfolio analysis
development
research and development ideas are tested using a prototype
in this stage there are high cost as money is spent but no sales are made so no revenue
introduction
newly lunched limited sales are made as sales are low and its not known so informative promotion is needed
growth
persuasive advertising
sales grow more
competitors lunch similar
customer base is formed
maturity and saturation
sales are at there peak
market share is made
and may need to diced if they relaunch/extend product line
decline
change in the taste of customers intro of new tech new products
reduce in sales
ad of PLC
-help in decision-making (extension)
-help focus marketing efforts
-help decisive promotional strategies
dis of PLC
-lifecycle can depend on factors like (market conditions, competition ,customer preferences)
-only for products cant work for services
-its a simplistic model, difficult to predict change in fashion
extension strategy define
methods or ways of prolonging the life of a product before the decline stage by promotion or product adjustments
product adjustments
freshening up how:
updating
add value/USP
extend the range
change packaging
promotion
find new uses for the product
find new markets
invest in advertising
encourage more use
product portfolio
isa collection/range of products of goods that are being solid or marketed at a spefic time
when is the best time to lunch a new product
in the maturity stage you can use the profit to help lunch
Boston matrix
is an a2*2 matrix modal that is used to analyze a product portfolio using the relative market share and growth rate
what does boston matrix use:
cash cows:high market share has prrofit but low growth (H,L)
stars:high MS AND GROWTH (H,H)
question marks :low market share and high growth (L,H)
dogs:low market share withh lpw growth(L,L)
AD of boston matrix
-balancing product lines
-taking appropriate decisions
-how to allocate business resources to maximize profit
PPQ
find out if they should remove dogs ( reminder just becouse it a dog dosent mean it should be removed may still make revenue)
focus promotion
DIS of Boston matrix
does not take into consideration eternal factor ex; competitors or fashion changes
just becouse it a dog dosent mean it should be removed may still make revenue
marketing mix
are the marketing elements that a company uses they are the 4ps and they are place price promotion and product and are used to meet the needs of customers
product
meeting needs
features:
how they use product
appearance
valve of money
PLC
usp
price
can represent exclusivity
high cost leads to a high price
promotion and place
promotion is a way of communicating with customers to encourage buying
place location or can be online
marketing strategies for mass markets
economies of scale all products are standardized (same for all)
price is low not premium
expensive promotion as there is HIGH COMPETITION
1-product need a USP TO STAND OUT
2-price low all products are controlled by the going rate
3-promotion high amounts intensive
4-place more than one channal
niche
low competition so low promotion (more specific)
high prices
more selective places
unique products
what is outbound
this involves directing marketing materials at potential customers whether they are expecting it ore not
this could include direct mail, emails, telemarketing, sponsorship, or targeted adverts
dis of outbound
people are increasingly ignoring adverts, so they may go unnoticed
people commonly object to cold calling and mailing lists
can be seen as intrusive
persistence in directly targeting consumers can damage a brand’s reputation
Significantly more expensive than inbound strategies
inbound
This invokes attracting potential customer to websites when they care looking for suppliers or solution to to problems
- this can be done through blogging, social media marketing, search engine optimisation, free e-book, video marketing and targeted email marketing
dis of inbound
t requires a lot of effort and resources
It is difficult to turn visits to a website into sales
It can be hard to keep these methods up to date with dynamic trends
hybrid
This involves combining both outbound and inbound marketing strategies
It is common for these methods to take at least six months to generate results
because of this, businesses will often employ outbound methods to use in the short-term to get quicker results
Once hybrid methods begin to take effect, less successful outbound marketing can be dropped
This will help to reduce costs and create sustainable growth in marketing shares
What are different ways a business can develop customer loyalty?
communication
Customer service
Customer incentives
Personalisation
Preferential treatment
